Practicing Success
Practicing Success
CUET Preparation Today
| If the retiring partner is not paid the full amount due to him immediately on the retirement, how should his capital account be shown in the subsequent balance sheet? |
Capital A/c Current A/c His Loan A/c None of these |
| His Loan A/c |
| The total amount due to the retiring partner which is ascertained after all adjustments have been made to be paid immediately to the retiring partner. In case the firm is not in a position to make the payment immediately, the amount due is transferred to the retiring Partner’s Loan Account, and as and when the amount is paid it is debited to his account. |
